Lead Expert for Country Support on Rating Agencies at the African Union, Dr Misheck Mutize, has criticised recent downgrades of the African Export-Import Bank (Afreximbank) by Fitch and Moody’s, describing them as “incorrect” and not backed by fundamentals.
Speaking in an interview with ARISE News on Tuesday, Dr Mutize argued that the downgrades were speculative and failed to reflect the bank’s strong financial position. He noted that other rating agencies had reaffirmed Afreximbank’s higher-grade ratings, which he said proved Fitch’s assessment was flawed.
“Fitch moved to a triple B minus with a negative outlook, which was not warranted. Their analysis was speculative and an incorrect reading of risk,” Mutize stated.
He stressed that Afreximbank plays a vital role in financing intra-African trade and infrastructure under the African Continental Free Trade Area (AfCFTA). According to him, downgrades undermine the bank’s ability to mobilise capital critical for trade and development across the continent.
Mutize also highlighted the bank’s efforts to diversify its funding sources, tapping into Japanese and Chinese markets through Samurai and Panda bonds. He pointed to Kenya’s recent move to swap Eurobonds into yuan-denominated debt as an example of how alternative markets could ease Africa’s debt burden.
“The bank is not desperate for funds but is demonstrating capacity to access alternative markets. It still has over $2 billion in untapped credit lines, which shows strong financial flexibility,” he added.
He faulted Fitch and Moody’s for overlooking Afreximbank’s shareholder support, including $4.6 billion in callable capital from African member states and its preferred creditor status. He insisted that international agencies instead chose to emphasise “weak risk management and liquidity concerns,” which he described as speculative.
Mutize explained that part of the dispute stemmed from Fitch’s treatment of loans to Ghana, Zambia and Sudan as non-performing, despite Afreximbank’s compliance with international financial reporting standards. “Fitch rejected those disclosures and applied its own methodology, which we find problematic,” he said.
The AU expert further urged a shift towards South-South financing alternatives, citing Egypt’s successful low-interest Samurai and Panda bond issuances at 1–3% compared to Eurobonds issued at rates as high as 12%.
He concluded that Afreximbank remains central to Africa’s financing architecture and investor confidence, stressing that rating downgrades should not derail its strategic role in driving trade and infrastructure growth across the continent.
